Form 4: Sweetgreen CFO Mitch Reback Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan

Sweetgreen's CFO, Mitch Reback, sold shares of Class A Common Stock to cover tax obligations and under a pre-arranged 10b5-1 trading plan.

Summary

• Mitch Reback, the CFO of Sweetgreen, Inc., reported changes in beneficial ownership of the company's Class A Common Stock.
• On August 16, 2024, Reback sold 9,156 shares at a weighted average price of $36.61 to satisfy a tax withholding obligation.
• On August 20, 2024, Reback sold 9,297 shares at a weighted average price of $33.39 and 200 shares at $34.10 under a 10b5-1 trading plan established on August 23, 2023.
• Reback also gifted shares to family trusts on August 20, 2024.
• After these transactions, Reback directly owns 369,684 shares and indirectly owns shares through various family trusts.

Sentiment

Score: 5

Explanation: The document reflects routine transactions (tax obligation and 10b5-1 plan sales) and gifting, with no inherent positive or negative implications for the company's performance.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies, often driven by personal financial planning, diversification, or pre-arranged trading plans. The use of 10b5-1 plans is a standard practice to allow insiders to sell shares without being accused of trading on non-public information.

Comparison to Industry Standards

• Executive stock sales are a common practice across the industry.
• Companies like Chipotle, Starbucks, and McDonald's also see regular insider trading activity.
• The use of 10b5-1 trading plans is a standard practice to avoid accusations of insider trading, aligning with industry norms.

Related Party Transactions

• Shares were gifted to family trusts controlled by Donald Spetner, Trustee of The IMCR GRAT and The MRCR GRAT.

Stakeholder Impact

• The transactions are unlikely to have a significant impact on stakeholders as they are routine and pre-planned.

Key Dates